Bursa Malaysia’s ACE Market-listed Kanger International Bhd has diversified into construction via its wholly-owned subsidiary, Kanger Ventures Sdn Bhd.
In a filing to Bursa on Jan 15, the group announced Kanger Ventures has entered into collaboration agreements with multiple main contractors for Kanger to carry out remaining construction works across six sites totalling RM495.9 mil.
Meanwhile, the total contract value of RM495.9 million represents the remaining amount of construction work at six construction projects located in Kuala Lumpur as well as in Pahang.
“We are always looking for new opportunities to expand our income stream and are pleased to mark our maiden entry into the construction sector,” said Kanger’s executive director Steven Kuah Choon Ching.
“The signing of the collaboration agreements today bodes well for the group as it will immediately give Kanger construction contracts that will positively enhance the group’s revenue and earnings over the next few years.”
Under the terms of the collaboration agreements, Kanger will be responsible for the project management role and coordinate the remaining construction work of the projects.
Kanger’s scope includes management of subcontractors appointed by the main contractors and the handling of financial matters which include fulfilling payments to the sub-contractors promptly.
All of the six construction projects are expected to be completed by December 2023. The progressive work done during the construction period of these projects are expected to contribute positively to Kanger’s financial performance in the next three financial years ending 31 December 2021, 2022 and 2023.
“This collaboration paves the way for Kanger to enhance its track record in the construction industry and strengthen its profile when bidding for other projects in the near future,” Steven commented.
In September 2020, the group ventured into healthcare sector and inked a collaboration agreement with Sinopharm Group Hunan Changde Medical Co Ltd (SGHC) for the distribution of COVID-19 vaccines developed by China National Biotech Group Company (CNBG) in Malaysia. – Jan 15, 2021
